News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.04% France 40: 0.01% FTSE 100: 0.01% US 500: -0.29% Wall Street: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/MqwdApCJ0C
  • The US Dollar is pulling back from what’s become a strong outing in the month of September. Get your $USD technical analysis from @JStanleyFX here:https://t.co/hOvSiIDFLT https://t.co/d0SEnfJT0s
  • webinar starting right now - looking at 1. themes for q3 close 2. debates starting tonight, what might market ramifications be? 3. heavy week of data out of the us - $USD in the spotlight https://www.dailyfx.com/webinars/455809179 https://t.co/tZxa4c2zVl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.20%, while traders in US 500 are at opposite extremes with 62.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9tCHS7o18f
  • Heads Up:🇺🇸 Fed Williams Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-29
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 1.93% Gold: 0.62% Oil - US Crude: -4.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/674URQqbej
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.49% 🇪🇺EUR: 0.41% 🇳🇿NZD: 0.37% 🇬🇧GBP: 0.05% 🇯🇵JPY: -0.17% 🇨🇦CAD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/NLmATP58eY
  • Trader confidence is relatively buoyant in the currency markets, benefiting FX pairs such as EUR/USD, GBP/USD and AUD/USD at the expense of the safe-haven US Dollar. Get your market sentiment update from @MartinSEssex here: https://t.co/ir7hXNfxec https://t.co/2IwbcrkrM5
  • Join @JStanleyFX 's #webinar at 1:00 PM ET/5:00 PM GMT for his weekly update on trading price action. Register here: https://t.co/ZCcMdyaTsB https://t.co/xn5x2AG5vI
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.16% Germany 30: -0.17% France 40: -0.17% US 500: -0.63% Wall Street: -0.81% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/z1qnxoAWz7
Aussie Dollar Rallies as 2Q Chinese GDP Reduces RBA Rate Cut Bets

Aussie Dollar Rallies as 2Q Chinese GDP Reduces RBA Rate Cut Bets

2016-07-15 03:19:00
Daniel Dubrovsky, Analyst
Share:

Talking Points

  • The Australian Dollar rallied against its major peers
  • Chinese 2Q GDP crossed the wires above estimates
  • 2 year yields rallying suggests ebbing RBA rate cut bets

Having trouble trading the Australian Dollar? This may be why.

The Australian Dollar rallied against its major peers after China’s second quarter (2Q) GDP data crossed the wires. Between April and June this year, the world’s second largest economy grew 6.7 percent (YoY), better than the 6.6 percent estimate. In addition, the economy expanded 1.8 percent (QoQ) versus 1.6 percent expected. In March, China gave a target for GDP growth between 6.5 to 7 percent. Today’s report shows the parameters being met.

Being Australia’s largest trading partner, Chinese growth expansion can have a positive correlation for the nation’s economy. This can in turn cause the Reserve Bank of Australia to take action to favor a less accommodative monetary policy stance in order to subdue inflation as more capital flows between the countries. This is likely why Australian 2-year government bond yields rallied as the news was released.

While the markets are pricing in at least one RBA rate cut over the next month, China’s GDP figures appeared to subdue near term easing speculation. In other words, the markets likely interpreted the data may lead the central bank to cut rates later rather than sooner.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing a reading of -1.27 following the announcement, meaning that for every longAUD/USD position, there are 1.27on the short side. The SSI is a contrarian indicator at extreme levels, implying further AUD/USDstrength ahead.

Want to learn more about the DailyFX SSI indicator? Click here to watch a tutorial.

Aussie Dollar Rallies as 2Q Chinese GDP Reduces RBA Rate Cut BetsAussie Dollar Rallies as 2Q Chinese GDP Reduces RBA Rate Cut Bets

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES